Page 25 - Climate Control News Mag October 2019

Building Automation
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Top five dominate global BAS market
THE GLOBAL BUILDING Automation System (BAS) market grew seven per cent in 2018 and is valued at $US35 billion.
This is an increase from $US33 billion in 2017, according to a new research study by Future Market Insights.
The report said Schneider Electric SE, ABB, Siemens AG, Johnson Controls and Honeywell International remain the top five players in the building automation market, commanding nearly a 40 per cent share of the global market.
However, fierce competition will threaten this domination including new vendors.
“VENDORS ENTERING THIS SPACE INCLUDE BIG BRANDS SUCH AS APPLE AND GOOGLE NEST.
– FUTURE MARKET INSIGHTS.
“Despite having a robust sphere of influence, leading players will continue to face competition threats from new vendors entering the market with newer promises,” the study said.
Vendors entering this space include big brands such as Apple and Google NEST.
These companies will upend the playing field pushing established players to come up with new strategy models, the study said.
“These new vendors are focusing on residen- tial spaces and addressing special require- ments enabling them to tap into niche corners
and reap sizeable profits,” the study warns. “Manufacturers don’t have to stick to their conventional ideologies to sustain growth, they can go beyond core competencies and catch up
with some new market trends instead.”
One trend currently being embraced by cus- tomers is a preference for BAS services over hard-
ware and software purchases.
This is because attractive packages are being
offered by service providers that manage every- thing from installation to maintenance.
“However, a significant portion of end users will continue to lean toward building automa- tion software, which will top $AUD15.5 billion in 2019,” the study said.
Some of the biggest opportunities will be in the commercial space, particularly in East Asia where the market has been growing at a rate of eight per cent year on year.
While Europe (32%) and North America (30%) continued to be the largest markets for BAS in 2018 and 2019, East Asia is likely to emerge as the biggest region for growth.
East Asia will grow at a rate of nine per cent year on year from 2019 driven by demand for 'smart buildings'. The region is set to undergo a drastic makeover covering architecture, engi- neering and construction.
Meanwhile, one of the top global players in this market, ABB, has appointed a new CEO.
Björn Rosengren will join ABB on February 1, 2020 and succeed CEO, Peter Voser, in this role on March 1, 2020. At that time Peter Voser will revert to his position at ABB solely as Board chair. ✺
Schneider Electric, ABB, Siemens, Johnson Controls and Honeywell command a 40 per cent share of the global market.
CLIMATE CONTROL NEWS OCTOBER 2019
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